PatriciaV
Expert Alumni

Business & farm

You contributed your full investment in the SMLLC to the S-Corp. This would be your historical adjusted basis, calculated as your initial investment plus additional investments (cash or property) less any funds taken out of the business plus/minus each year's income or loss. This total could well be $10,000 if you were profitable and didn't take funds out of the business.

 

However, in the absence of any other assets or debt, the cash in the bank account must, by definition, be equal to your equity in the SMLLC. The equation that defines the balance sheet is Assets = Liabilities + Equity.

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